Computing cash paid for other operating expenses Black Ice, a sportswear manufacturer, reported other operating expenses of $30 Million. Prepaid insurance expenses increased by $4 million, and accrued utility payable decreased by $7 million. How much cash did the company pay in other operating expenses. The answer shown to be $41 Million (30+4+7) Wait a minute, isn’t the DECREASE in accrued utility payable LIABILITY means more cash has been paid out (outflow)? I thought the answer should be 30+4-7=27. Please explain why this is not the case?
Never mind…I got it…It was asking for “how much cash was paid”, so yes, that $7M was paid also. It’s late in the night…my brain is dying.